Nexo (NEXO), a Zug, Switzerland-based startup that provides “instant” cryptocurrency-backed loans, has announced that it will start paying interest in five different stablecoins.

Established in 2017 and having received $52.5 million in total funding to date, the Nexo lending platform reportedly offers 6.5% interest, compounded annually and “paid out daily,” on Dai, Paxos Standard Token (PAX), Circle’s (USDC), Tether (USDT), and TrueUSD (TUSD). According to Nexo’s management team, the interest payouts to users are fully automated and are available for all Nexo wallets.

Borrowing "Instantly" In 45 Different Fiat Currencies

There are “no minimum amounts” or additional service fees and there’s insurance on certain packages “of up to $100 million.” As noted by Nexo through its official Twitter account, the company plans to add support for more assets in the future.

According to Nexo’s website, the company also offers a credit line on most major cryptocurrencies including Bitcoin, Ether, Binance Coin (BNB), XRP, Monero (XMR), among others. As explained on Nexo’s website, the fintech firm “has an insured [crypto] wallet that lets users borrow instantly in 45+ fiat currencies” while accruing interest on “idle assets.”

Notably, Nexo has partnered with BitGo, a leading Palo Alto, California-based crypto security platform that provides “multi-signature security-as-a-service solutions”. BitGo is reportedly acting as a custodian for Nexo as it’s securing all cryptoassets for the crypto startup. As stated on Nexo’s website, BitGo is “insured by Lloyd’s,” which provides one of the world’s largest insurance and reinsurance markets.

Moreover, BitGo is also backed by giant Wall Street investment bank, Goldman Sachs and is Cryptocurrency Security Standard (CCSS) Level 3 compliant. This means that “multiple [verified] actors [are required] for the all-critical actions, as advanced authentication mechanisms are employed to ensure the authenticity of data, while assets are distributed geographically and organizationally.”

Additionally, BitGo’s custodian services are SOC 2 compliant, which is essentially a standardized auditing procedure that “ensures your service providers securely manage your data to protect the interests of your organization and the privacy of its clients.”

BlockFi Also Offering Interest Payments For Cryptos

As CryptGlobe reported on March 20, BlockFi Lending LLC, a New York-based “secured non-bank lender” that also offers crypto-backed loans in USD to cryptoasset investors, announced that its interest-yielding deposit accounts received more than $25 million in cryptocurrency. This, only two weeks after the official launch of its lending platform.

As noted by Zac Prince, BlockFi’s CEO, the firm’s terms of service have been created to allow it to operate in a flexible manner. Prince added that BlockFi is able to decide, for the most part, how it intends to use depositors’ crypto funds and it can also determine how much in interest payments it will pay them during a given time period. This, Prince explained, was necessary as the company is presently working on further expanding its operations.

BlockFi provides two different lending products, which include crypto-backed loans and crypto-funded interest-generating accounts. The New York-based firm’s loans-based product lets users borrow in USD for a one year period at a 4.5% interest rate while depositing bitcoin, ether, and/or litecoin as collateral. Currently, users can only borrow up to 50% of what they’ve put up as collateral.

Notably, only a few weeks after launch, BlockFi has already decreased the interest rate paid out to its account holders. Effective as of April 1 of this year, accounts with over 25 BTC or 500 ETH will only receive 2% on the funds deposited above the maximum threshold. Initially, BlockFi’s contracts had offered investors 6% in interest payments on similar packages.